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2. Microsoft Corporation June 25, 2009

3. This presentation may contain statements that are forward looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially because of factors in this presentation or discussed in today’s press release, in the management’s discussion and analysis section of the company’s Form 10-K or in other reports and filings with the Securities and Exchange Commission. We undertake no duty to update or revise any forward looking statements, whether as a results of new information, future events or otherwise.

4. Qualifying Product VersionUpgrade Software Version Windows Vista Home PremiumWindows 7 Home Premium Windows Vista BusinessWindows 7 Professional Windows Vista UltimateWindows 7 Ultimate Small Business & Consumers receive free* Windows 7 licenses with qualifying purchases of Windows Vista Objective: Ensure customer satisfaction and support sales through the release of Window 7 Program availability: Qualifying Windows Vista premium sales from June 26, 2009 – January 31, 2010 Windows Vista qualifying versions: *Shipping and handling costs may apply

5. Deferral of revenue equal to the pro-rata “fair value” of the products: ~50/50 Deferral amount to be reflected in unearned balances Revenue recognized upon fulfillment or program expiration No impact on cash flows

6. Deferral Framework: Total Windows Vista premium sales - Units covered by Client Software Assurance = Sales subject to deferral x Deferral rate of ~50% = Windows 7 Upgrade Option deferral Estimated Q4’09 revenue deferral $200M to $300M

7. ©2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.